DNA Brands Inc (DNAX)

[Ed the Trader]

"There will absolutely be no dilution with those additional shares from what I learned."

I suggest that you go find an accurate definition of "dilution."

Raising the A/S does not issue new shares, thus there is no dilution

However, if there are new shares issued, that raises the O/S, and that is the very definition of dilution. It does not matter if the shares are restricted, or will never be traded.

The fact that additional shareholders now are splitting the same exact company assets as a few days ago means that everyone's position is now worth less than it was before new shares are issued

That is dilution... plain and simple.

Assuming that there were 7.33 billion shares in the O/S, and assuming that ultimately Adrian maxes out the O/S to 25 billion, that will have the same impact as a 1:3.4 reverse split. No one will lose any shares, but they will only be worth a bit less than one-third of what they were. (25 billion divided by 7.33 billion is roughly 3.4)

Now, the good thing about taking this path instead of a reverse split is that shareholders who bought their shares at $0.0001 still have the leverage of 100% gain for every single upward tick in PPS.

It just is going to take MUCH more to get the PPS to move upward now.